Can the Franchisor or its affiliates be approved suppliers for Pearce Bespoke franchisees?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
trol over Franchisee's day-to-day operation of the Business or to assume any responsibility for Franchisee's obligations under this Agreement.
C. Equipment, Supplies, and Inventory.
Franchisee agrees to use in the operation of the Pearce Bespoke Franchise only those service providers, manufacturers, brands or types of items, equipment (including, without limitation, a computer and pointof-sale (POS) system), and signs that Franchisor will designate and approve. Franchisee may purchase approved brands or types of items, equipment, and signs only from suppliers approved by Franchisor, which may include Franchisor or its affiliates. Franchisee further agrees to place or display at the Pearce Bespoke activity only such signs, emblems, lettering, logos, and display materials that are from time to time approved in writing by Franchisor, which approval may be given or withheld by Franchisor. Franchisee acknowledges and agrees that: (i) Franchisor or Franchisor's affiliate(s) may be the sole approved supplier(s) of certain products and services that Franchisee is required to purchase to operate the Pearce Bespoke Franchise; (ii) Franchisor and/or Franchisor's affiliate may receive payment from supplier(s) related to Franchisee's required purchases or leases, and (iii) any payments so received are for Franchisor's benefit only and may be used or applied in any manner determined by Franchisor in Franchisor's sole and absolute discretion.
D. Training.
Franchisor will provide a training program online, or at such other location Franchisor designates, to educate, familiarize, and acquaint Franchisee with the business of operating a Pearce Bespoke Franchise. The first portion of the training program will include instruction on general business issues related to the ownership of a privately-owned Pearce Bespoke business, such as, by way of example only, product knowledge, recruitment, business plan development, tech tools, point-of-sales systems, product purchasing, Franchisor's preferred vendor program, and other topics Franchisor may select. The duration of this portion will be at Franchisor's discretion but generally will be for one week and will be scheduled by Franchisor at its discretion. The second portion of the training program may include instruction on sales and marketing, computer operation, Pearce Bespoke Franchise management, and other topics Franchisor may select. The period of this session will be at Franchisor's discretion but generally will be for one week and will be scheduled by Franchisor.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, franchisees must purchase approved items, equipment, and signs from suppliers approved by Pearce Bespoke, which may include Pearce Bespoke or its affiliates. Pearce Bespoke or its affiliates may be the sole approved supplier for certain products and services that a franchisee is required to purchase. Pearce Bespoke and/or its affiliate may receive payments from suppliers related to the franchisee's required purchases or leases. These payments are for Pearce Bespoke's benefit and may be used in any manner determined by Pearce Bespoke.
Pearce Bespoke franchisees must purchase only such types, models, or brands of items, furniture, equipment, signs, and supplies that Pearce Bespoke approves. These items must meet Pearce Bespoke's specifications and standards, including those for quality, design, warranties, appearance, function, and performance. These items must be purchased only from sources, manufacturers, or suppliers approved in writing by Pearce Bespoke, which may include Pearce Bespoke or affiliates of Pearce Bespoke.
Pearce Bespoke disclaims all warranties, whether express or implied, including any warranties of merchantability or fitness for a particular purpose in connection with Pearce Bespoke's (and/or an affiliate's) sale of any goods, equipment, furniture, signs, or supplies to the franchisee. The franchisee agrees to execute any documents Pearce Bespoke reasonably requests, including letters of credit, security agreements, and financing statements, to provide collateral for amounts due to Pearce Bespoke for purchases of inventory and other items custom in the franchisee's business.